Wholesale with buyers agent - do they get commission?

Question

Hello all,

I couldn't seem to find a direct answer to this question yet. My question is this: if I am working with a buyers agent to get a potential wholesale deal under contract for me, if/when I find a buyer for the wholesale transaction, will she still get the buyers agent commission?  This is on a MLS property. I ask because she has been very good to work with and I don't want to waste her time writing up an offer for me if she still doesn't get her part of the commission.

Thank you,

Tae

Christopher Phillips · Answer

@Tae C.

Yes. If the property is on the MLS, the original seller would be responsible for paying a commission to the listing agent and the buyer's agent.

Now, that being said, it doesn't really make sense to wholesale a property that's on the MLS. The end buyer could have just put in an offer directly with their own agent.

Jim Holub · Answer

Interested to know if you are still wholesaling on the MLS and how it's going? As I'm sure you have learned by now, when buying properties on the MLS, the buyer's agent represents you in the transaction. They write your offer to the seller with the terms you wish to offer such as buying the property as-is or waiving inspection or all cash. Some states do not allow this and refer to it as double agency. Some allow it but your buyers agent is a "transaction agent" meaning they don't represent your interests, they just are handling the transaction. The important thing is to make sure your offer states the contract will be assignable. Don't get too hung up on this if the seller won't agree to this there are ways around it. Once the seller accepts your offer, you then assign the contract to another buyer. The original seller of the property pays the commission to both the listing agent and the buyer's agent (your agent in the transaction). When you assign the contract to your buyer and collect your fee, there is no agent involved and therefore no commission.

Roland Paicely · Answer

Another thought:  if you haven't done any wholesaling before.  I'd recommend not trying to wholesale directly from the MLS.  It's a different ballgame.  However, it can be done.  It's simply easier to navigate if you have some deals under your belt.

Felipe Munoz · Answer

I'm thinking no.  Agent represents you, but you won't be closing the transaction.  Maybe if end buyer agreed to have your agent represent them as well?  Or if it was set up as a double closing.......but that would add expenses (ie. more closing costs)

Tae C. · Answer

@Christopher Phillips

Thanks for the quick response. What I am asking more specifically is - would my buyers agent who wrote up the initial offer still get the buyers agent commission even if I were to wholesale the property to a different end buyer (who consequently wasn't originally represented by my buyers agent)?

Christopher Phillips · Answer

@Tae C.

If it's on the MLS they have to offer out a commission to other participating members, that's part of the rules.

Wholesale with buyers agent - do they get commission?

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